The government now allows foreigners living in Indonesia to own houses as part of efforts to boost the economy, following the release of a regulation signed by President Joko "Jokowi" Widodo.

Jokowi signed a government regulation on Dec. 22 regarding house ownership for foreigners living in Indonesia, according to the official website of the Cabinet Secretariat on Tuesday.

The regulation stipulates that foreigners who hold resident permits are allowed to own houses under the Right to Use Title.

"Foreigners living in Indonesia are those who are not Indonesian citizens but whose presence provides benefits through opening businesses, working or investing in Indonesia," the regulation stated as quoted by setkab.go.id.

The properties can also be inherited if the owner dies. The heirs must also have resident permits or be Indonesians who married foreigners.

According to the regulation, foreigners are able to own landed houses and apartments.

They can own their houses for up to 80 years. The first Right to Use Title lasts for 30 years and it can be extended twice, for 20 and 30 years.

The regulation also stipulates that if the foreigner house owners and the heirs no longer live in Indonesia, they must release or transfer the house to other parties in accordance with the requirements.

"If within a year the house has not been released or transferred, the house will be auctioned by the state and given to the owner of the land title on which the house is built," the regulation stated.

The Agrarian and Spatial Planning Ministry is set to clarify further details on the release and transfer of house ownership in a ministerial decree.

The government previously allowed foreigners to own luxury apartments worth at least Rp 10 billion as part of its first financial stimulus package launched last year in a bid to boost the economy, especially in the sluggish property sector.